Forex reserves decreased by $ 28.05 billion in September 2021-March 2022: RBI
According to an RBI report, the country’s foreign exchange reserves fell by $ 28.05 billion to $ 607.31 billion at the end of March this year from $ 635.36 billion at the end of September 2021. The Reserve Bank of India (RBI) publishes a semi-annual report on the management of foreign exchange reserves as part of its efforts to increase transparency and disclosure.
These reports are produced every six months, with reference to the March and September-end locations each year. The current report, which is the 38th in the series, with reference to the location until the end of March 2022.
“During the half-year period under review, reserves decreased from $ 635.36 billion at the end of September 2021 to $ 607.31 billion at the end of March 2022,” the report said on Thursday.
Although both the US dollar and the euro are maintained in the intervention currency and foreign exchange reserves (FCA) major currencies, foreign exchange reserves are identified and expressed in US dollar terms.
Movements in the FCA are mainly due to changes in the RBI’s buying and selling of foreign exchange, revenues generated by setting up foreign exchange reserves, receiving external assistance from the central government and revaluation of assets.
The RBI’s net forward assets (receivables) in the domestic foreign exchange market stood at $ 65.79 billion at the end of March 2022.
At the end of December 2021, the foreign exchange reserve cover of imports (based on balance of payments) decreased from 14.6 months to 13.1 months in September 2021.
As of the end of March 2022, the RBI held 760.42 metric tons of gold (including 11.08 metric tons of gold deposits), the report said.
Where 453.52 metric tons of gold is kept abroad in safe custody with Bank of England and Bank for International Settlements (BIS), 295.82 metric tons of gold is kept internally.
In terms of value ($), the share of gold in total foreign exchange reserves has risen from about 5.88 per cent at the end of September 2021 to about 7.01 per cent as of the end of March 2022, it says.
As of the end of March 2022, of the total FCA of $ 540.72 billion, $ 363.03 billion was invested in securities, $ 140.54 billion was deposited in other central banks and BIS, and the remaining $ 37.16 billion was deposited in commercial banks abroad.
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